FTC: AT&T misled consumers over promises of unlimited data

Associated Press

WASHINGTON

AT&T is being sued by the government over allegations it misled millions of smartphone customers who were promised unlimited data but had their Internet speeds cut by the company — slowing their ability to open Web pages or watch streaming video.

The Federal Trade Commission filed its complaint Tuesday against AT&T Mobility Inc., charging that the telecom company failed to adequately disclose to customers that it would reduce data speeds if they went over a certain amount of data use in a billing cycle. The practice, known as throttling, slowed Web browsing, GPS navigation or streaming videos.

According to the complaint, at least 3.5 million consumers have been affected.